Dr. Chu: Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.
Mr. Obama: Well I won't raise the federal gasoline tax, that would be a mistake because it would put additional burdens on American families right now.
Dr. Krugman: Look guys, it's easy--ever since we went off the gold standard, we've been on the black gold standard. If we just print more dollars without producing more oil, the price of oil has to rise -as surely as the tides. Remember, inflation rewards debtors!
Mr. Obama: So I can pay for my programs and cut oil consumption? The average American family won't feel it so long as they keep borrowing. Win-Win!
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I think this is the scenario we're living.
ReplyDeleteYeah. There was no deadpan humor intended.
ReplyDeleteBad news for Obama: He's gotta use the excise tax. Inflation doesn't make oil any more expensive relative to bread or anything else, except dollars. And there would be lots more of those circulating around.
ReplyDeleteOtherwise we'd be buying a lot less gasoline than we did in the 1960s--but we don't.